What return rate should I use in a SIP calculator?

For long-term equity mutual fund SIPs of 10 years or more, 12% is a reasonable default — that is roughly the 20-year CAGR of the Nifty 50 as of 2026. Use 10% for a conservative estimate or 14% if you are invested in a diversified multicap or midcap fund with a strong track record. Try a range of inputs: the true realized return will only be known in hindsight.

Is a step-up SIP better than a regular SIP?

Yes, in most cases. A step-up SIP increases your monthly contribution by a fixed percentage each year — typically 5–10% to match salary growth. Over a 20-year horizon, a 10% annual step-up can grow the final corpus by 60–80% compared with a flat SIP, because your contributions rise in real terms and later contributions still have time to compound.

Do these figures include tax and expense ratio?

No — this calculator shows gross returns before fees and taxes. Equity mutual funds charge a Total Expense Ratio (TER) of 0.5–2% annually which directly reduces your effective return. Long-term capital gains (LTCG) on equity mutual funds are taxed at 12.5% on gains above ₹1.25 lakh per financial year, as per Budget 2024. For a net estimate, subtract 1–1.5% from your input return rate.

SIP or lump-sum — which gives better returns?

Mathematically, lump-sum wins in a steadily rising market because the full amount compounds for the entire tenure. But SIPs smooth volatility through rupee cost averaging, and for most salaried investors a lump sum is not available anyway. If you have a windfall (bonus, inheritance), splitting it across a 6–12 month staggered deployment often beats both extremes in volatile markets.

Can mutual fund SIPs give negative returns?

Yes — over short horizons of 1–3 years, a SIP started near a market top can be deep in the red. Indian equity indices corrected 40%+ in 2008 and 35%+ in March 2020. Over rolling 10-year and 15-year periods, the Nifty 50 has historically never delivered negative SIP returns, but past performance does not guarantee future outcomes. Only invest in equity SIPs money you can leave untouched for at least 7 years.

How accurate are these projections?

The math is exact — but markets are not. Real returns are lumpy: some years deliver +30%, others −20%. This calculator shows what your corpus would be if the market averaged your input return rate over the full tenure, which is an idealization. Use the output as a planning reference, not a forecast. Actual realized returns depend on entry timing, fund selection, TER, and tax treatment.

SIP Calculator

Estimate monthly mutual-fund SIP returns.

Maturity

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Invested

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Wealth gained

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Absolute return

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Total

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Invested: —
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Year-by-year breakdown

Invested base + wealth gained on top

Figures are gross of fund expense ratio (0.5–2% per year) and LTCG tax (12.5% above ₹1.25 lakh gains per year, as of FY2025-26). Projections assume a constant rate of return.

Heads up: Real markets deliver lumpy year-on-year returns — some years +30%, others −20%. Use this output as a planning reference, not a forecast. Educational only — not investment advice.

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount of money into a mutual fund at regular intervals — typically monthly. Instead of timing a single large purchase, you spread contributions across market cycles, which smooths out entry prices through rupee cost averaging.

For example, a ₹10,000 monthly SIP into an equity mutual fund delivering 12% annualised returns over 15 years grows to approximately ₹50.46 lakh — of which ₹18 lakh is your contribution and ₹32 lakh is compounded gains. The longer the horizon, the more compounding dominates over contributions.

SIPs in India are regulated by SEBI through the AMFI framework. Most fund houses allow SIPs starting as low as ₹500 per month, with auto-debit setup through NACH mandates on your bank account.

How this is calculated

For a flat monthly SIP, the future value is computed using the standard annuity-due formula — each contribution compounds from the start of its month until the end of tenure.

FV = P × [((1 + r)^n − 1) / r] × (1 + r)

FV — future value (maturity corpus)
P — monthly SIP amount
r — monthly rate (annual return ÷ 12 ÷ 100)
n — total months (years × 12)

For a step-up SIP, this calculator iterates month by month, adding the current contribution and compounding the corpus by (1 + r). Every 12 months it bumps the monthly contribution by the step-up percentage, then continues.

How to use the calculator

Enter your monthly SIP amount. Type the rupee amount you plan to invest each month. The default is ₹10,000 — a realistic mid-range SIP for salaried Indian investors.
Set your expected annual return. Use 10–12% for conservative equity mutual fund projections. The Nifty 50 has delivered roughly 12% CAGR over 20 years as of 2026.
Choose your investment tenure. Pick the number of years you plan to stay invested. Equity SIPs are most effective over 10+ year horizons where compounding dominates.
Optional: add an annual step-up. Step-up SIPs increase your monthly contribution each year to match salary growth. A 10% annual step-up can nearly double the final corpus over 20 years.

What return is realistic in 2026?

This is the most important number in any SIP projection — and the most commonly misused. Here is the current evidence base for Indian equity funds:

Asset	Historical CAGR	Reasonable projection
Nifty 50 index fund	~11–13% (20-year)	10–12%
Large-cap equity fund	~12–14% (15-year)	11–13%
Diversified multicap fund	~13–15% (15-year)	12–14%
Mid-cap equity fund	~14–17% (15-year)	12–14%
Small-cap equity fund	~15–20% (15-year)	12–15%
Hybrid / balanced fund	~9–11% (15-year)	8–10%
Debt / liquid fund	~6–7%	6–7%

Source: Nifty 50 CAGR from NSE Indices return profile; category ranges from AMFI data and Value Research category aggregates. Historical CAGR is backward-looking; realised returns in any given decade can diverge significantly.

Frequently asked questions

What return rate should I use in a SIP calculator?: For long-term equity mutual fund SIPs of 10 years or more, 12% is a reasonable default — that is roughly the 20-year CAGR of the Nifty 50 as of 2026. Use 10% for a conservative estimate or 14% if you are invested in a diversified multicap or midcap fund with a strong track record. Try a range of inputs: the true realized return will only be known in hindsight.
Is a step-up SIP better than a regular SIP?: Yes, in most cases. A step-up SIP increases your monthly contribution by a fixed percentage each year — typically 5–10% to match salary growth. Over a 20-year horizon, a 10% annual step-up can grow the final corpus by 60–80% compared with a flat SIP, because your contributions rise in real terms and later contributions still have time to compound.
Do these figures include tax and expense ratio?: No — this calculator shows gross returns before fees and taxes. Equity mutual funds charge a Total Expense Ratio (TER) of 0.5–2% annually which directly reduces your effective return. Long-term capital gains (LTCG) on equity mutual funds are taxed at 12.5% on gains above ₹1.25 lakh per financial year, as per Budget 2024. For a net estimate, subtract 1–1.5% from your input return rate.
SIP or lump-sum — which gives better returns?: Mathematically, lump-sum wins in a steadily rising market because the full amount compounds for the entire tenure. But SIPs smooth volatility through rupee cost averaging, and for most salaried investors a lump sum is not available anyway. If you have a windfall (bonus, inheritance), splitting it across a 6–12 month staggered deployment often beats both extremes in volatile markets.
Can mutual fund SIPs give negative returns?: Yes — over short horizons of 1–3 years, a SIP started near a market top can be deep in the red. Indian equity indices corrected 40%+ in 2008 and 35%+ in March 2020. Over rolling 10-year and 15-year periods, the Nifty 50 has historically never delivered negative SIP returns, but past performance does not guarantee future outcomes. Only invest in equity SIPs money you can leave untouched for at least 7 years.
How accurate are these projections?: The math is exact — but markets are not. Real returns are lumpy: some years deliver +30%, others −20%. This calculator shows what your corpus would be if the market averaged your input return rate over the full tenure, which is an idealization. Use the output as a planning reference, not a forecast. Actual realized returns depend on entry timing, fund selection, TER, and tax treatment.